TMI Blog

2018 (2) TMI 895

of clearances of intermediary goods, which resulted that they paid short duty. But when they have been pointed out by audit party, they paid duty along with interest therefore, malafide intention is missing in this case. In such circumstance, no show-cause notice was required to be issued to the respondent.
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The SCN is also barred by limitation.
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Appeal dismissed - decided against Revenu .....

course of audit it was pointed out that the appellant is required to pay duty as per the present cost of the goods in terms of CAS 4. Appellant immediately paid the differential duty along with interest. Thereafter show-cause notice was issued by invoking extended period of limitation for appropriation of the amount paid by appellant demanding duty of ₹ 33,15,563/- under the provisions of Se .....

y have been pointed out by audit party that they have to pay duty, they paid duty along with interest in terms of Section 11A of the Central Excise Act, 1944, and no proceedings were required to be initiated against the respondent. He further submits that the show-cause notice has been issued by invoking extended period of limitation, therefore the show-cause notice is also barred by limitation. 6 .....

efore, I hold that the show-cause notice is also barred of limitation. In that circumstances, the duty paid along with interest is required to be appropriated and no further proceeding is required to be initiated against the respondent. Accordingly, I find the learned Commissioner (Appeals) has rightly dropped the penalty imposed against the respondent. In that circumstance I do not find any infir .....